Interindustry variation in the costs of job displacement

Date

1994-04

Authors

Carrington, W. J.
Zaman, A.

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Source Title

Journal of Labor Economics

Print ISSN

0734-306X

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The University of Chicago Press

Volume

12

Issue

2

Pages

243 - 275

Language

English

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Abstract

Job displacement entails a substantial wage reduction for most dis- placed workers. We show that the mean reduction, the tenure profile of reductions, and the experience profile of reductions all vary sub- stantially across industries. We then link this interindustry variation to analogous variation in firm size, unionization, wage levels, and the incidence of employer-provided training. While these industry char- acteristics explain some of the interindustry variation in mean wage reductions, they do not explain variation in the tenure or experience profiles of wage reductions.

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